- Bitcoin Cash has witnessed a rally in the past week, reaching its highest level since 2021 as it approaches the $700 mark.
- With the recent halving reducing scarcity and bullish sentiments rising, this has been viewed as a precursor for the upcoming Bitcoin halving.
The highly anticipated Bitcoin Cash halving has successfully taken place this week. As confirmed by the Bitcoin Cash developers and community, this event has led to the block reward from 6.25 to 3.125 BCH. This bolsters the altcoin’s price as it reduces the amount of coins in circulation, potentially driving prices up.
Following the halving, BCH has rallied by nearly 8% and is exchanging for $670 at the time of writing. In the past 24 hours, the little brother to Bitcoin has added around 5% as the BCH community celebrates this achievement. Data from the last 30 days shows that the coin has seen an upsurge of more than 40%.
According to OKLink data, BCH’s network mining difficulty has reached its highest level since 2019 at 761,589.2. At the same time, miner rewards have fallen from an average of 0.0003 at the beginning of this year to 0.00017.
Having topped $700 earlier, this marked a record high since May 2021. But investors are still hopeful of more gains. BCH reached its all-time high of $3,785 was reached in 2017 and investors expect the altcoin to revisit this high before the end of the year. At current prices, the altcoin offers a massive investment opportunity with little risk and high reward potential.
In addition to the reduced supply, there is confidence that Bitcoin Cash is one of the top contenders for crypto ETFs. Away from the popularized coins, BCH stands unique in that it is a hardfork of Bitcoin. With Bitcoin, the only token deemed not a security and the only ETF-approved token, experts foresee Bitcoin Cash, which shares similar features to Bitcoin receiving the same treatment.
A Bitcoin Cash ETF would usher in a new era for the altcoin and see billions of dollars in investment flow into the digital asset. Furthermore, the altcoin would gain great exposure, attracting new investors to the project.
Bitcoin Cash Halving a Precursor for Bitcoin
Some in the Bitcoin community are beginning to draw parallels from the Bitcoin Cash halving and many predictions for BTC. The world’s largest cryptocurrency in the world will undergo its 4th halving on April 20th. The success of this event will lead to the reward awarded to miners cut in half from 6.25 BTC to 3.125 BTC.
Historically, the event has led to a rally pre-halving and post-halving. Significantly, it has led to a new all-time high within a year of its successful execution. Earlier this year, BTC recorded a new all-time high of nearly $75,000. Experts are now predicting a rally to between $90,000 and $100,000 before the end of the year.
